Kevin Is an Incoming Freshman at Your College

question 281

Multiple Choice

Kevin is an incoming freshman at your college.Kevin is frustrated by the cost of books, tuition, and expenses and he also needs to purchase a rather expensive laptop.In an effort to save money, Kevin organizes a Facebook group with other college students who need to purchase laptops.Soon, Kevin's Facebook group has close to 100,000 students.Kevin decides to collectively approach different computer companies to see if his group qualifies for a special discount.What business strategy is Kevin using to purchase laptops?

• A)collecting business intelligence
• B)decreasing entry barriers
• C)purchasing a substitute product
• D)increasing buyer power

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Definitions:

Gross Profit

The financial gain obtained after subtracting the cost of goods sold from net sales revenues, indicating the efficiency of core business operations.

Beginning Inventory

The value of a company's inventory at the start of an accounting period, carried over from the end of the previous period.

Days In Inventory Ratio

A financial metric indicating the average number of days a company holds inventory before selling it, calculated as inventory divided by cost of goods sold, then multiplied by 365 days.

Average Inventory

An accounting measure used to estimate the value of inventory over a certain period by averaging the beginning and ending inventory levels.